To recap the issues raised during Wednesday’s conference call, here are some of the key media stories, and the messages we’re conveying.
If there is a subject you would like to see addressed on Wednesday, June 17, please email Mike Barry at michaelb@iii.org.
Louisiana governor expected to sign bill limiting insurer imposition of windstorm deductibles:
Governor Bobby Jindal is likely to sign into law House Bill 333, which would limit a property insurer’s imposition of the homeowners insurance windstorm deductible to one hurricane per season, a Wednesday, June 10, Times-Picayune story reported. This same article also noted that Senate Bill 130 is making legislative progress and could lead to premium rate reductions for Louisiana homeowner’s who are covered through Citizens, the state’s property insurer of last resort.
Louisiana bill would have homeowners with drywall damages qualify for state tax credits:
Louisiana State Senator Julie Quinn’s (R-Metairie) bill originally would have allowed homeowners who found defective drywall in their homes to sue the product’s makers, distributors and sellers for damages and attorney fees. But Senator Quinn had the bill rewritten this week to delete the litigation provisions, according to a Tuesday, June 9, article in the New Orleans Business Journal.
State Farm makes limited return to Mississippi homeowners insurance market:
State Farm will begin writing new homeowners policies effective Monday, June 15, in all Mississippi counties except for the coastal counties of Hancock, Harrison and Jackson. The company had not written a new homeowners policy in the state since February 2007, according to this Wednesday, June 10, story in the Clarion Ledger.
Mississippi wind-pool subsidy in limbo as session ends:
An effort by Mississippi legislators to secure an additional $20 million in taxpayer funds to help the state’s wind pool with reinsurance programs aimed at offsetting premium increases has stalled. This Saturday, June 6, Biloxi Sun Herald story offers additional details.
Term life insurance policy premium prices rising, Wall Street Journal reports:
Consumers who shopped around for new term life insurance policies every few years should consider changing their strategy since many insurers are now charging more for these policies, a Tuesday, June 9, Wall Street Journal article reported. Premium increases of anywhere from 5 to 15 percent began to appear in January 2009, and that rate of increase is now seen throughout the industry, according to the story.
Smart Money story pegged to study saying auto premium rates could rise up to 7 percent in 2009:
Smart Money reported in a Tuesday, June 9, online posting that brokerage firm Stifel Nicolaus has determined that auto insurance premiums nationwide increased an average of 2.5 percent in 2008, and could increase by up to 7 percent in 2009, which would constitute the biggest annual increase in more than five years.
California considering 23.7 percent increase in workers compensation insurance premiums:
Rising medical costs are behind the California Workers Compensation Rating Bureau’s proposal to raise workers comp premium rates by 23.7 percent. WorkCompCentral.com covered the issue, which was the subject of a Monday, June 8, public hearing in Sacramento, California (see attached).
CBS’s Early Show looking for story ideas for its ‘Summer Safety’ series:
CBS producer Audrey Gruber (Phone: 212-975-5073, email: grubera@cbsnews.com) is open to hearing ideas about summer safety. She spoke to the I.I.I. within the past week about grilling safety and homeowners insurance.
Bloomberg News wire reporter assessing insured losses, lightning strikes:
Cordell Eddings (Phone: 212-617-2358), who recently joined the Bloomberg News wire insurance team, is interested in compiling data on insured losses due to lightning strikes for a story he is filing this month.
Fortune advertorial to focus on separating home’s replacement cost from its market value:
Boston-based Fortune reporter Lynn Asinof (Phone: 781-862-8908) consulted the I.I.I. when writing her upcoming story, which will be placed within a paid advertising section of the magazine.
Colorado tornadoes, hail storm may have caused millions of dollars in damages:
Best Wire posted on Tuesday, June 9, an online story (subscription required) about the insurance repercussions of a tornado/hail storm, which struck Aurora, CO on Sunday, June 7.
Fort Myers, FL-based insurance agency to reduce payroll by more than 15 percent:
The News-Press reported on Tuesday, June 9, that Oswald Trippe, a Fort Myers, FL-based independent insurance agency, is laying off 34 of its 200-member work force because of a soft market and reduced premiums, which are yielding lower commissions.
Consumer Reports, Bradenton (FL) Herald doing research on insurance repercussions of Chinese drywall:
Tobie Stanger of Consumer Reports (Phone 914-378-2529) and Duane Marsteller of the Brandenton Herald (Phone: 941-745-7080, ext. 2630) are looking at the issue of defective Chinese drywall and insurance coverage.
Obama administration’s financial regulatory proposal expected on June 17:
The Obama administration has scaled down its proposal to reduce the number of agencies involved in the regulation of financial markets, suggesting that the current system will continue generally unchanged, according to a front page story in the Tuesday, June 9, edition of the Wall Street Journal. Rather than responding to the financial crisis by calling for a major regulatory consolidation, the White House is expected to seek broader authority for most of the existing agencies in order to limit the risks taken by financial institutions.
U.S. House of Representatives bill would forbid SEC from regulating indexed annuities:
On Friday, June 5, the National Association of Insurance Commissioners (NAIC) applauded the introduction of H.R. 2733, the Indexed Annuities and Insurance Products Classification Act of 2009. The bill would forbid the Securities and Exchange Commission (SEC) from regulating indexed annuities, a power the SEC is expected to assume from state insurance regulators in 2011.
Standard & Poor’s panel says property/casualty insurers may be under reserving:
More on the June 1-2, 2009 Standard & Poor’s Ratings Services insurance conference discussion regarding the state of the p/c market can be found in the I.I.I. Members Bulletin.
TheStreet.com examining auto insurers’ use of education/occupation:
Randy Diamond, formerly of the Palm Beach Post (email: Rdiamond100@yahoo.com) and now a freelance reporter, is looking at the issue for an upcoming story for TheStreet.com.
Palm Beach Post health reporter joins Kaiser Health News:
The Palm Beach Post’s Phil Galewitz, one of Florida’s most experienced health journalists, will join Kaiser Health News on Monday, June 15.
Kansas City Star prepping piece on auto insurance premium rate increases:
Former KC Star reporter Gene Meyer (Phone: 913-432-6257, email: Geneameyer@gmail.com), who now freelances for the paper, is looking into the reasons behind this year’s slight increase in U.S. auto insurance premiums.
Los Angeles, Santa Barbara to be site of August 2009 Insurance Department hearings on California wildfires:
The details on the August 19 and August 25 events are in a Monday, June 1, press release from Insurance Commissioner Steven Poizner’s office.
Louisiana seat belt law moving forward:
Louisiana Senate Bill 168, requiring all occupants of vehicles to use seatbelts, is being sent to the House, where an almost identical measure, HB 499, has already been approved, the Tuesday, June 9, Times-Picayune reported. The only difference between the bills is that the Senate measure specifies that anyone 13 and older must wear a seatbelt in a moving vehicle, while those under 13 must be secured in an age-appropriate safety device. Eighteen other states and the District of Columbia require all vehicle occupants to wear seatbelts.
Connecticut bill which would have banned credit-based insurance scoring in CT fails:
National Underwriter posted online on Monday, June 8, details regarding the demise of House Bill 6444.
New Vermont law bans sale of stranger-owned life insurance:
Governor Jim Douglas signed into law on Monday, June 1, a bill which prohibits the sale of so-called stranger owned life insurance (STOLI) in Vermont. The American Council of Life Insurers sent a representative to join the governor at the bill-signing ceremony, a Friday, June 5, press release states.
New York’s State Senate is in upheaval as two Democrats cross aisle to join Republicans:
The Republicans control for now the New York state Legislature’s upper chamber because two state Senate Democrats agreed to caucus with the GOP’s Senators, thereby flipping what had been a 32-30 Democratic majority into a 32-30 Republican majority.
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